Quiz on Personal Finance

Knowledge of personal finance is very essential for everyone. It helps you to manage your funds easily, thereby saving more money. You can easily save more money if you will understand the basic personal finance and flow of your money. Many people simply do not want to manage their finances due to lack of knowledge and feels it very complicated to give it a try. But, if once you will try to understand your finances by learning few financial terms and ways to multiply your money, you will find it not much complicated as you always would have thought. Rather, it gives you a good and secure feeling and you will start enjoying calculate your earnings and expenses.


Its Quiz Time!!
Its Quiz Time!!

If you find it difficult to manage your finances and get confused by various terms; here is a quiz to learn about finance in a fun way. Learning anything in a fun way is always helpful and you will always remember that learning quite easily. It will also encourage you to manage your day-to-day finances and you may even become more interested to grow your money by investing it in various investment instruments.

Below is a very easy and interesting quiz on personal finance which will use most basic terms to give you a general idea of personal finance.

Quiz on Personal Finance

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If you have correctly answered all the questions, Congratulations to you; you have basic understanding of personal finance. You should not be afraid to manage your finances and it will be quite easy for you to not only manage your money but even to grow it. Learn more about personal finance and know how to manage your finances effectively.

If you have wrongly answered for any question, you may need to learn a bit more about basic personal financial terms. Check out the below link to learn about basic personal financial terms and come back to take this quiz again.

If you find this quiz interesting, share it with your friends and let them also understand more about personal finance in an interesting way. And do not forget to share your score and views about this quiz in the comments section.

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Comments 13 comments

Simone Smith profile image

Simone Smith 5 years ago from San Francisco

I love the quiz, and really appreciate how you have made the personal finance education process more interactive!


anujagarwal profile image

anujagarwal 5 years ago from Noida Author

Thanks for the appreciation Simone. Most people find the Finance world much complex, so I thought to make the learning process a bit easy and interactive.


Kayley 5 years ago

Mobiles & laptops are most definitely assets...


anujagarwal profile image

anujagarwal 5 years ago from Noida Author

Mobile and Laptops are actually depreciating assets as their value and life decreases over time.


brokenmeadows profile image

brokenmeadows 3 years ago

Actually, Kayley is correct. Mobiles and laptops are assets. Anything of value that you own is considered an asset. In fact, by definition, if something can depreciate it must be an asset. Also, mutual funds are a very safe investment, as they spread your risk over an entire basket of stocks to mitigate your risk. Finally, the term "Balance Sheet" can and should be applied to personal fiances. It's essential to getting an overview of what your assets are, and what your debts and liabilities are.

Great job making a hub to try to make finance fun and interesting to people, but I wanted to clear up those little mistakes. I actually work in the field, so I love to help out where I can! All people should have access to a solid financial education.


anujagarwal profile image

anujagarwal 3 years ago from Noida Author

@brokenmeadows: I appreciate your comment and you are correct in the sense that Mobiles/Laptops are assets but by definition they are not considered as pure assets as their value decreases over time. If we will take your definition regarding assets then even apparels/kitchenware, everything is an asset. People recommend to invest in diversified assets; but it does not mean to buy laptops of different brands, multiple microwaves etc, because they will not provide any appreciation in the future. I hope you understand what my point is.

Mutual funds by no means are very safe investment options. You can say it a comparatively safer option than investing directly in equities. Safe investments are those which are guaranteed to give back at least the invested amount unless off course institution does not go bankrupt.

Balance Sheet by term is basically used by corporates and business houses; it is not the term we use while listing down assets, liabilities of an individual. For this, we usually use the terms such as budget planner / expense sheet, etc. But, I agree with you that this term can be used but actually it is not used.

Thank You dropping by.


brokenmeadows profile image

brokenmeadows 3 years ago

I understand that you will defend your answers, but for the sake of anyone else reading this hub, I'd just like to point out they are not correct. I actually do this for a living day in and day out, and mutual funds are considered safe investments, mobiles and laptops are considered assets, and balance sheets are used in personal finance. In fact, many banks will request a personal balance sheet when you are applying for a large loan. And mutual funds are often considered a better investment than CDs, because the low interest rate on CDs makes them actually lose value over time when adjusted for inflation.

I appreciate your hub and attempt to make finance fun, but I don't want it to mislead people into being scared of mutual funds, or not understanding that depreciable assets can be listed on personal balance sheets when dealing with a bank.


anujagarwal profile image

anujagarwal 3 years ago from Noida Author

I do believe that one must invest in mutual funds for the long term to be able to get better returns and to beat inflation. But Mutual funds are always subject to market risk; means if the market crashes even in a normal scenario, you may lose 5-10% of the value at the time when you might need the money but this is not the case with CDs. So, it is best to left it on the readers to decide what is best for them and how much risk they can afford.

I actually pity that your customers/readers may invest their entire savings in depreciating assets in the false impression that these so called assets (assets whose value will decrease over time) will also help them in getting a loan.

Thank you for showing the concern for my readers but please do not be in the impression that I need to defend my answers as they are actually the facts.


brokenmeadows profile image

brokenmeadows 3 years ago

I'm sorry if you were offended by my corrections, but there is no need to be insulting. I think you are confusing the words "assets" and "investments". You are correct that most depreciable assets, such as a car or laptop, are poor investment choices. However, they are still assets. The definition of asset is simply something owned by a person or company that has value. I am not advocating that anyone invest their life savings in laptops- that's clearly ridiculous. An asset is not by definition an investment vehicle. However, many depreciable assets, such as cars, jewelry, or anything else that holds value, should absolutely be listed on personal balance sheets when applying for a loan. In fact, a car itself can be used to take out a secured title loan, even though a car is a depreciating asset.

And of course it is up to readers to choose whatever investment vehicle they like. Almost all investment options hold risk. I was just pointing out that mutual funds are considered one of the safer investing options, as they spread risk across the market. Of course the entire market can crash, just as a bank can fail. But it's important to inform readers that there are safe investment options outside of CDs, as they are obviously a poor long-term investment choice. Because they lose value over time when adjusted for inflation, readers should not rely on them too heavily for long-term planning. (It should obviously be noted, as well, that they are not highly liquid assets, as you must commit to investing your money for a set period of time or pay a penalty, so if you are trying to keep liquid cash for when you "might need the money" a money market account might be a better decision.)

Maybe you can try rewording the questions in your quiz, to make them accurate while still getting your point across.


anujagarwal profile image

anujagarwal 3 years ago from Noida Author

Thank you for your deep insight and suggestions.


brokenmeadows profile image

brokenmeadows 3 years ago

You're welcome. I hope it helps you bring your hub to a whole new level!


anujagarwal profile image

anujagarwal 3 years ago from Noida Author

Let's see. But remember to ask your clients to write down electronic assets in their personal balance sheet only if they are less than five years old. Most electronic item's value depreciates to zero after 5 years.

Source: www.irs.gov


brokenmeadows profile image

brokenmeadows 3 years ago

Actually, a personal balance sheet doesn't use the accumulated depreciation method, but instead lists assets at fair market value (FMV). The IRS site only governs how to depreciate business assets on a tax return, which generally uses the MACRS method. Again, this only governs the actual tax return balance sheet, Schedule L of forms 1065 and 1120, and the book balance sheet of the business can use a different method of depreciation if it is more appropriate. Anyone reading this hub purely for personal finance information doesn't need to worry about depreciation, and anyone reading it who owns a business should consult an accountant or more reliable source.

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